Human Resource Management ELEVENTH EDITON

1. SECTION 1Nature ofHuman ResourceManagement Human ResourceManagementELEVENTH EDITON Robert L. Mathis  John H. Jackson Organizational / Individual Relations and Retention Chapter 3 PowerPoint Presentation by Dr. Zahi Yaseen

2. Organizational / Individual Relations and Retention After you have read this chapter, you should be able to: • Identifying the changing nature of the psychological contract • Describe different kinds of absenteeism and turnover • Explain two ways to measure of absenteeism and turnover • Discuss how motivation is linked to individual performance • List the five major drivers of retention and activities related to them • Outline the steps in managing retention

3. Organizational / Individual Relations and Retention Individual/Organizational Relationships : • The Psychological Contract • The unwritten expectations employees and employers have about the nature of their work relationships. Affected by age of employee and changes in economic conditions. • Employers provide: • Competitive compensation and benefits • Career development opportunities • Flexibility to balance work and home life • Employees contribute: • Continuous skill improvement • Reasonable time with the organization • Extra effort when needed

4. Individuals, jobs, and effective HR managementChapter 3 Individual/ organizational relationships: “ I’m just waiting for the economy to get better, and I’m out of here” - The psychological contract: The unwritten expectations employees and employers have about the nature of their work relationships. Both tangible items “ wages, salaries, benefits..) and intangible items “ loyalty, fair treatment, job security” are encompassed by unwritten contracts between employees and their employers .

5. Individuals, jobs, and effective HR managementChapter 3 The psychological contract components: Employer provide Employees contribute competitive compensation * continuous skill improvement and benefits. And increased productivity flexibility to balance work * reasonable time with the and home life. Organization. Career development * Extra effort when needed opportunities.

6. Job Satisfaction, loyalty, and commitment • Job Satisfaction A positive emotional state resulting from evaluating one’s job experience. Job dissatisfaction occurs when one’s expectations are not met. • Loyalty more than just satisfied with your job, you are pleased with the relationship with your employer. • Organization Commitment The degree to which employees believe in and accept organizational goals and desire to remain with the organization.

7. Factors Affecting Job Performance and Organizational Commitment Absenteeism Turnover

8. Absenteeism Any failure to stay at work as scheduled. • Involuntary absenteeism Unavoidable with understandable cause ( eg; actual illness) • Voluntary absenteeism Avoidable without justifiable cause (e.g., claiming illness) • Measuring Absenteeism • Reasons for Absenteeism : lost wages, benefits, overtime Or replacement..

9. Reasons for Unscheduled Absences Personal Needs 18% Family issues 22% entitlement Mentality 13% Personal illness 36% stress 11% Source: Based on data from CCH Absenteeism Survey, CCH Human Resources Management, November 1, 2003.

10. Job Satisfaction, loyalty, and commitment

11. Employee Turnover The process in which employees leave the organization and have to be replaced. • Types of Turnover • Involuntary turnover -- Voluntary turnover Employees are terminated for poor Employees leave by choice performance, or work rule violence _ Functional Turnover -- Dysfunctional turnover lower performing, or disruptive key individuals and high employees leave. Performers leave at critical _ Uncontrollable Turnover -- Controllable turnover Employees leave for reasons Employees leave for reasons outside the control of the employer that could be influenced by the employer

12. Measuring Turnover Ways in which to measure turnover • Job and job levels • Department, units, and location • Reason for leaving • Length of service • Demographic characteristics • Education and training • Knowledge, skills and abilities • Performance ratings/levels Computing the turnover rate:

13. Individual Employee Performance • Individual ability to do the work • Effort level expended • Organizational support Performance (P) = Ability(A) x Effort (E) x Support(S) • Individual Motivation • The desire within a person causing that person to act to reach a goal. The need for comprehensive strategies and tactics to address both equity and expectations of employees.

14. Components of Individual Performance

15. Retention of Human Resources • Why People Stay • Great company • Value and culture, well-managed, and offers exciting challenges • Great job • Freedom and autonomy, exciting challenges, and career advancement and growth • Compensation and lifestyle • Differentiated pay package, high total compensation, geographic location, and respect for lifestyle

16. Drivers of Retention • What employers can do to retain employees? 1- positive culture: many firms uses culture to retain their employees “ employer of choice”, “ great work environment”. 2- effective management: visionary quality of organizational leadership. Clearly established goals. 3- job security: contract, minimizing layoff policy, effective management through change.

17. Drivers of Retention • Job design and work • job/person matching • Time flexibility • Work/life balancing . • Characteristics of the • employer • Culture and values • Effective management • Job security • Career opportunities • Training/development • and mentoring • Career planning/ • And advancing Retention • employee relationships • Fair, non discriminatory • treatment • Supervisory/ • Management support • co- worker relations • Rewards • Competitive pay • And benefits • Performance and • Compensation • Recognition

18. Management Retention • Retention measurement and assessment 1- Absence / turnover measurement 2- employee surveys: identify employee needs and feelings toward the organizational HR activities. 3- exit interviews : give their reasons for leaving the org 4- data analysis: attempt to get at the cause of retention problems. 5- retention evaluation and follow up

19. The Retention Management Process